Block deal today: Sai Life Sciences shares in focus as TPG Asia may sell 6% stake

Shares of Sai Life Sciences are in focus on Friday morning amid reports global asset management company TPG is likely to offload 1.25 crore shares, representing a 6 per cent stake, in a deal estimated at $102 million (Rs 880-885 crore), according to a report. The base price for the transaction is said to be Rs 710 per share, which reflects a 2.5 per cent discount to the Thursday's market price.

The deal will also include a 60-day lock-in period for the seller, CNBC-TV18 reported, citing sources.

As of March 31, 2025, TPG held over 5.15 crore equity shares in the company through TPG Asia VII SF PTE Ltd, amounting to a 24.73 per cent stake in the smallcap firm. 

Sai Life Sciences had a strong FY 2025 with solid revenue and profit growth, driven by its CRO and CMO businesses. The new Peptide Research Center and global client relationships position it for growth in new drug modalities, Arihant Capital Markets said in May. 

Sai Life Sciences' capex plan supports long-term growth, targeting 15-20 per cent revenue increases and 28-30 per cent margins, the domestic brokerage said.

The Sai Life Sciences stock was listed on the exchanges on December 18, 2024. Since its listing, the stock is up 33 per cent over its issue price of Rs 549 apiece. The stock is up 3.5 per cent in the past three months compared with a 4.31 per cent rise in the BSE Healthcare index and 7.85 per cent rise in the BSE Sensex.

Sai Life Sciences operates as a contract research, development, and manufacturing organisation (CRDMO), and is one of the listed Indian peers in the segment. The company has a global footprint with operations in the UK, the USA, and Japan.
Sai Life Sciences has guided for revenue growth of 15-20 per cent annually over 3-5 years. It is targeting Ebitda margin in the 28-30 per cent range in two years. It has capex plans of Rs 700 crore including Rs 550 crore for manufacturing and R&D, Rs 50-60 crore for peptides, ADCs, and oligonucleotides.

The company has expanded manufacturing by 30 per cent in FY25 and more was planned for May 2025. In terms of CRO growth, Sai Life Sciences expects 12-15 per cent increase in staff (FTEs) after 27 per cent growth in FY25. The company has a strong CMO pipeline, with Phase 3 products though commercial timelines depend on clients, Arihant Capital Markets said.